Construction

Data Center Construction Market Trends 2025–2029: Forecasts for Key Growth Segments

November 13, 2025 by The Business Research Company

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By How Much Is The Data Center Construction Market Expected To Expand Between 2025 And 2029?

The domain of data center construction has experienced robust expansion lately, projected to increase its valuation from 260.49 billion US dollars in 2024 to 276.26 billion US dollars in 2025, reflecting a consistent compound annual growth rate (CAGR) of 6.1%; this upward trajectory during the historical timeframe stems from escalating requirements for data handling and computational power, coupled with increased capital flowing into digital frameworks, the furtherance of global interconnectedness, and the increased need for facilities offering colocation services.

Anticipation is high for significant expansion within the sphere of data center construction across the upcoming years; this market is projected to achieve a valuation of $356.48 billion by the year 2029, reflecting a consistent compound annual growth rate (CAGR) of 6.6%. This upward trajectory through the forecasted timeframe is fundamentally driven by several key factors, including the burgeoning digital economy, the worldwide expansion of existing data centers, the widespread migration toward cloud computing infrastructures, increasing consumer and business needs for localized edge data centers, and the ongoing deployment of 5G networks. Furthermore, several prominent developments characterizing this period are emerging, specifically focusing on environmentally conscious building practices and ecological design principles, the adoption of standardized, prefabricated modular data center solutions, heightened requirements for robust security protocols alongside regulatory adherence, and the increasing availability of data center services offered on a subscription, as-a-service model.

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Which Drivers Are Supporting Growth Of The Data Center Construction Market?

The increasing volume of data being utilized within cloud computing environments is anticipated to fuel the expansion of the data center building sector moving forward. Data consumption is defined as the total volume of data transferred, either sent or received, via a connected device. Consequently, this demand mandates the expansion of the data center construction industry to develop additional physical data storage facilities. To illustrate this trend, a report from the American Bar Association, an organization representing legal professionals and students in the United States, revealed in November 2022 that aggregate cloud data utilization rose substantially, moving from 60% in 2021 up to 70% the following year, alongside a remarkable jump in individual cloud users from 52% to 84% within that same twelve-month period. Thus, the escalation in cloud data consumption serves as a principal catalyst for the growth observed in the data center construction market.

What Are The Primary Types Of Segments Analyzed In The Data Center Construction Market?

The data center construction market covered in this report is segmented –

1) By Data Center Type: Small-Scale Data Centers, Medium-Scale Data Centers, Large-Scale Data Centers

2) By Infrastructure: Electrical Infrastructure, Networking Infrastructure, Other Infrastructures

3) By Power Distribution And Cooling Infrastructure: Power Distribution, Cooling

4) By End-Use: Banking, Financial Services and Insurance (BFSI), Energy, Government, Healthcare, Manufacturing, IT And Telecom, Others End-Uses

Subsegments:

1) By Small-Scale Data Centers: Edge Data Centers, Micro Data Centers

2) By Medium-Scale Data Centers: Colocation Data Centers, Hybrid Data Centers

3) By Large-Scale Data Centers: Enterprise Data Centers, Hyperscale Data Centers

Which Ongoing Trends Are Expected To Shape The Data Center Construction Market Outlook?

Leading entities within the data center fabrication sector are directing their efforts toward product evolution through the integration of novel concepts like Universal Data Hall Design (UDHD) with the ambition of expanding their presence in the marketplace. This UDHD methodology represents a specific data center layout incorporating standard colocation elements but places a paramount focus on adaptability and the capacity for future growth. Characterized by a slab floor complemented by cooling situated around the perimeter, UDHD proves exceptionally suitable for deploying substantial, full-hall, high-performance computing (HPC) requirements. By way of illustration, in August of 2023, the American firm DataBank Holdings Ltd., a provider of information management services, introduced UDHD, an inventive construction strategy for high-density data centers specifically engineered to accommodate HPC workloads. This Universal Data Hall Design grants organizations the necessary agility to manage and adapt to the precise deployment needs dictated by their various computing tasks.

Who Are The Prominent Global Companies Shaping The Data Center Construction Market?

Major companies operating in the data center construction market are Google LLC, Amazon Web Services Inc., Microsoft Azure, The International Business Machines Corporation, Schneider Electric SE, Meta Platforms Inc., NTT Ltd., Turner Construction Co, STO Building Group Inc., Equinix Inc., DPR Construction Inc., Iron Mountain Inc., Digital Realty Trust Inc., Stantec Inc., SAS Institute Inc., Zayo Group Holdings Inc., Gensler, CyrusOne LLC, Hensel Phelps Construction Co., Cyxtera Technologies LLC, Fortis Construction Inc., QTS Realty Trust Inc., HITT Contracting Inc., TierPoint LLC, Sabey Data Center Properties LLC, Flexential Corp., Holder Construction Group LLC, Cologix Inc., Alfa Tech Consulting Engineers Inc., ipSpace.net AG.

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What Are The Key Regional Factors Influencing The Data Center Construction Market Growth?

North America was the largest region in the data center construction market in 2024. The regions covered in data center construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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